Monday, April 18, 2011
Standard & Poors Cuts U.S. Outlook to Negative Because Both Parties Keep Throwing Money at Endless Wars, Endless Bailouts and a Ponzi Financial System
As I've been warning for years, America's irresponsible financial policy will lead to a credit downgrade.
Today, S&P cut its U.S. outlook to negative, warning of a 1 in 3 chance of a credit downgrade in the next couple of years.
As the Wall Street Journal notes:
Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt remains unclear.
"More than two years after the beginning of the recent crisis, U.S. policy makers have still not agreed on how to reverse recent fiscal deterioration or address longer-term fiscal pressures," S&P credit analyst Nikola G. Swann said. He said the rating agency puts the chance of a U.S. downgrade within two years at least one-in-three.
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S&P said Monday it sees material risk that policymakers might not agree on how to address budgetary challenges by 2013, which would render the U.S. fiscal profile weaker than that of other triple-A-rated countries.
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S&P said that if an agreement isn't reached and meaningful implementation is not begun by 2013, it would make the U.S. fiscal profile meaningfully weaker than that of other triple-A-rated sovereigns.
While the Democratic and Republican leadership point fingers at the other side, and bicker about ideological pet peeves, this is not a question of left-versus-right.
The war between liberals and conservatives is a false divide-and-conquer dog-and-pony show created by the powers that be to keep the American people divided and distracted. See this, this, this, this, this, this, this, this, this and this.
The real problem is that both Democrats and Republicans want to fund endless wars, give endless bailouts to the too big to fail banks and corporations, and perpetuate the expensive Ponzi scheme of printing money out of thin air.
Imperial wars reduce our national security. Indeed, our top military and intelligence officials say that debt is the main threat to our national security, and have said that the Pentagon must cut spending. See this and this.
Moreover, endless bailouts harm the economy. Ponzi finance costs trillions of dollars (and leads to a decrease in loans to Main Street). And see this and this.
To the extent that both the Republican and Democratic parties slavishly follow these meta-policies - which supersede the stated "conservative" and "liberal" goals - they will ensure that we lose our AAA credit, and they will destroy our economy.
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S&P has less credibility than the .gov.
ReplyDeleteI would trust Charles Manson's assessment of a security over S&P. The ratings agencies helped perpetuate the biggest fraud in human history. They are worthless.
"Today, S&P cut its U.S. outlook to negative, warning of a 1 in 3 chance of a credit downgrade in the next couple of years."
ReplyDeleteThat is so freaking funny. In the next couple of years . . . kind of like the lifejacket rating company downgrading the lifejackets after the U.S.S. Titanic has sunken to the bottom of the freezing Atlantic Ocean!
Are these the same S&P clowns that gave triple A ratings to the credit swap derivatives....instrumental in the housing bust/ huge profits for the privileged ....Ya.. we should trust their judgment
ReplyDeleteReduce security???
ReplyDeleteAs soon as they realize the drone wars are conducted from the continental US, we become a target.
As Gomer Pile would say “Surprise! Surprise! Surprise! The Bernank will act surprised and with his sincerest lying face say “I just didn’t see it coming”! Ha. Ha. The bizarre charade goes on as we go down!
ReplyDeleteStandard and Poor have their own rating system for the USA. If their ratings were figured on the same formula that they use for the rest of the world; we would have lost our AAA rating 2 years ago.
The IMF, World Bank and the rating agencies are owned by the criminal banksters and they will come in on queue as scheduled like Standard and Poor did today. The IMF has already made their debt threats and will soon be crying for Austerity as they have in Europe.
Wait! You ask “I can understand the US wanting to steal other countries resources and kill their people in their Crusade but why would they genocide their own American people”? That is a logical question. The thing is, these secret cabals are not logical; they are loyal criminal gang members who are insane sociopaths much like the Fascist regime in Nazi Germany and they want to own and control the world through chaos and tyranny.
They boldly go forth where no man dare, free from prosecution to form the Fascist New World Order. Ha. Ha.
In my mind, this is the prelude to the next leg down in this Great Depression 2.0. FDR was pressured by conservatives into cutting spending in 1937 and it led to further depression, NOT recovery. So, history is repeating itself again. But, you are correct - it is the Pentagon that is bankrupting this country, not feeding the hungry and healing the sick, as the hard right-wing would have you believe.
ReplyDeleteWell all of the above only because ...
ReplyDeleteJames Baker, once head of money stuff, said that if the U.S. Dollar is taken away from the realm of the world's reserve currency, we become a third world country.
Since we are in effect already a third world country, can you guess what is next?
be Still In Deep Water ...
I'm glad I'm not the only one who see's this.
ReplyDeleteamericansansculottes.blogspot.com